An overview of dynamic pricing toll roads in the United States: Pricing algorithms, operation strategies, equity concerns, and funding mechanism

Abstract

Toll roads with fully dynamic pricing schemes could play a key role in addressing the economic and environmental tolls imposed by increasing congestion levels in major metropolitan areas. Transportation professionals usually argue that they could provide additional revenue streams to accelerate the delivery of much-needed highway projects and serve as a tool for travel demand management. However, the number of dynamic pricing toll roads only increased recently in the U.S., and their performance has not been empirically evaluated systematically. This study provides a comprehensive review of U.S. dynamic pricing toll roads. Pricing is reactive to demand, and additional travel demand management strategies such as incentives for high occupancy vehicles, clean vehicles, and transit are commonly included. Both conventional project delivery methods and private–public partnerships have been used for such projects. Financial statements from a few P3 dynamic toll road projects suggest they are taking full advantage of TIFIA loans and are performing well during their short history. Equity issues are commonly raised, and many projects address them specifically through subsidies to vulnerable groups or re-investment in the community. Further quantitative analyses are needed to test if dynamic toll roads are an efficient tool to address the financial, economic, and environmental challenges major metropolitan areas face.